OandoOandoOandoOandoOandonewsA Q u a r t e r l y I n - h o u s e J o u r n a l o f O a n d o G r o u p

Special Edition, 2007. VOL. 6, NO. 3

OandoNews

ContentContentContentContentContentThe premises of the LagosBusiness School was agogwith activities on

Wednesday, 23rd August , 2007 asthey hosted major leadingcompanies in Nigeria to participatein their 2007 Career Fair of whichOando is one of the participatingcompanies in the sponsorship

The Career Fair is a forum thatcreates endless opportunities tomeet with MBA students anddiscuss with them possible careersin various organizations of choice.For the company, it is anopportunity to discover talent thatfits our needs and that can take usto the next level.

Present from Oando were theGroup Head, Human Resources,Mr. Akin Ayoola, Human CapitalManager, Mrs. Maureen Okoro-Sokoh.

Oando Sponsors the Lagos Business School Career Fair

(L-R) Mr. Akin Ayoola, Group Head, Human Resources discussing with one of the participants

Participants at the Oando Stand during the fair

Mr. Michael Adeniyi a civilservant from Abuja, theFederal Capital Territory

(FCT) and Mr. Ogbonna a businessman from Aba, Abia State haveemerged winners of the star prizeof two brand new Kia Picanto cars,in the just concluded Oando InstantAwoof Promo. Mr. Adeniyi andOgbonna’s name were picked in amega draw which took place inIkeja, Lagos on Friday, November30, 2007. Though the two winnerswere not present at the event theywere immediately contactedthrough phone calls to announcetheir surprise winning.

The Oando Instant Awoof Promo isa consumer loyalty reward schemeorganized to gratify customers ofthe Oleum range of lubricants withinstant gifts and the star prizes oftwo Kia Picanto cars. Prior to themega draw, customers had woninstant gifts of motorcycles,generators, bicycles, umbrellas, t-shirts, face-caps, key-rings, andbiros between 28th of July and on30th October 2007, while thepromotion lasted.

Commenting on his star prize, Mr.Adeniyi, who is an indigene of OsunState, South West of Nigeria, said,“It is a shock to me. A very bigsurprise because I actually do notbelieve in Promos. But with thispromo, Oando has stood itself outas a company to be trusted. Itshows how reliable it is in terms ofits share investments and othercorporate interests”.

Other winners at the event, whoeach won a generator, include;• MrMrMrMrMr. Adegbuyi Olusegun. Adegbuyi Olusegun. Adegbuyi Olusegun. Adegbuyi Olusegun. Adegbuyi Olusegun, a

banker from Lagos• Miss Bola KarMiss Bola KarMiss Bola KarMiss Bola KarMiss Bola Kareem eem eem eem eem from Lagos• MrMrMrMrMr. David Okoawo, . David Okoawo, . David Okoawo, . David Okoawo, . David Okoawo, Abuja, and and and and and• Alhaji SufAlhaji SufAlhaji SufAlhaji SufAlhaji Suffiyami Dandagarrfiyami Dandagarrfiyami Dandagarrfiyami Dandagarrfiyami Dandagarrooooo

from Katsina.

Those who won a motorcycle eachinclude;• Mohammed Sirajo Shaibu,Mohammed Sirajo Shaibu,Mohammed Sirajo Shaibu,Mohammed Sirajo Shaibu,Mohammed Sirajo Shaibu,

Chairman, Market Union,Kaduna

• Suleiman Ibrahim, Suleiman Ibrahim, Suleiman Ibrahim, Suleiman Ibrahim, Suleiman Ibrahim, Kaduna• Christian Ihedimdu, Christian Ihedimdu, Christian Ihedimdu, Christian Ihedimdu, Christian Ihedimdu, Lagos and• Mubaraq AkinMubaraq AkinMubaraq AkinMubaraq AkinMubaraq Akin an automobile

mechanic from Lagos.

While winners of a bicycle eachinclude;• Ben ObielueBen ObielueBen ObielueBen ObielueBen Obielue from Kaduna• Ja’afaru Dadinkowa, Ja’afaru Dadinkowa, Ja’afaru Dadinkowa, Ja’afaru Dadinkowa, Ja’afaru Dadinkowa, Abuja• ChinyerChinyerChinyerChinyerChinyere Enekwizu, e Enekwizu, e Enekwizu, e Enekwizu, e Enekwizu, Nnewi

Anambra State, , , , , and• Adejola.Adejola.Adejola.Adejola.Adejola.

Commenting on the promo, Mr.Michael Oshai, the MarketingManager, Retail (CMO-R), said “theinstant Awoof Promo is purely toshowcase the company’s Oleumrange of lubricants, package in 4

litres and 25 litres kegs as well asthe 1 liter motorcycle oil. We havegiven them these products at agood price with a promo to motivatethem, so that they are gettingquality as well as instant gifts whichis the ‘Awoof’”.

The winners of the Star prizes werepresented with their gifts in Lagoson 7 December, 2007 at OandoService Station at Awolowo road,Ikoyi in Lagos.

Final Winners Emerge in the Oando Instant AFinal Winners Emerge in the Oando Instant AFinal Winners Emerge in the Oando Instant AFinal Winners Emerge in the Oando Instant AFinal Winners Emerge in the Oando Instant Awoof Prwoof Prwoof Prwoof Prwoof Promoomoomoomoomo

(L-R) Ayo Ajose-Adeogun, Chief Marketing Officer, Oando Marketing presenting the keys to theKia Picanto to Mr. Micheal Adeniyi winner of the promo star prize and his wife, Mrs. Kike Adeniyi

ERP CommencesRoad Shows - Pg. 2

TRIPP Roadshow - Pg. 3

Instant Awoof Promo - Pg. 4

Lubes Dept. Commenceson site Training - Pg. 4

Oleum SM Launch - Pg. 5

Photo News - Pg. 6-7

OEPL holds Retreat ofRevival - Pg. 9

Nigeria Meets the World- Pg. 9

Financial Mgt. Issues - Pg. 10

Social Diary - Pg. 11

OandoNews 2

EDITORIAL TEAM

EditorEditorEditorEditorEditorTokunboh Durosaro

Assistant EditorsAssistant EditorsAssistant EditorsAssistant EditorsAssistant EditorsNiyi Olowola

Okoh-Esene WilsonSunmbo Olajubu

ContributorsContributorsContributorsContributorsContributorsOdion Aleobua

Daniel DirikiSamuel Onyenwe

Graphics/LayoutRotimi Jenfa

Oando newsOando newsOando newsOando newsOando news is a quarterly publication bythe Corporate Communications Department

of Oando Plc. All correspondence to TheTheTheTheTheEditorEditorEditorEditorEditor,,,,, Oando Plc, (9th Floor)

2, Ajose Adeogun Street,Victoria Island, Lagos,Nigeria.Website:www.oandoplc.com

Email: oandonews@oandoplc.com

All rights rAll rights rAll rights rAll rights rAll rights reserved. Materials in thiseserved. Materials in thiseserved. Materials in thiseserved. Materials in thiseserved. Materials in thisissue may be rissue may be rissue may be rissue may be rissue may be re-printed with due cre-printed with due cre-printed with due cre-printed with due cre-printed with due crediteditediteditedit

given to Oando Newsgiven to Oando Newsgiven to Oando Newsgiven to Oando Newsgiven to Oando News

EDITOR’EDITOR’EDITOR’EDITOR’EDITOR’s Notes Notes Notes Notes Note

Oando Parleys Stakeholders on OracleOando Parleys Stakeholders on OracleOando Parleys Stakeholders on OracleOando Parleys Stakeholders on OracleOando Parleys Stakeholders on OracleImplementationImplementationImplementationImplementationImplementation

Oando Plc, Nigeria’s leadingenergy services solutionprovider, has undertaken

an extensive roadshow nationwideto educate its various stakeholderson the impact the implementationof the newly deployed Oracleenterprise resource planning (ERP)software will have on businesstransaction processes andprocedures. Over 2000 Oando’sbusiness specific stakeholderssuch as financial institutions,commercial and industrialcustomers, petroleum productsand dealers, took part in theexercise. The roadshow took placein Lagos, Abuja, Port Harcourt,Benin and Kano.

The roadshow team was led by theChief Marketing Officer,Commercial (CMOC), Tsola Barrowand Chief Marketing Officer, Retail,(CMOR) Michael Oshai, whilemembers of the company’s GroupLeadership Council (GLC), Ayo

Ajose-Adeogun, Chief OperatingOfficer, (COO), Lara BanjokoDeputy , Chief Operating Officer(DCOO), Ronke Sokefun, GroupLegal Adviser, Biola Lawal, ChiefStrategic Officer and TokunbohDurosaro, General Manager,Corporate Services (GMCS), gavesupport.

Oando adopted and deployed thee-business platform in realisation ofits world-class aspirations, asrenowned world Fortune 500 elitecompanies are known to run allaspects of their businesses on theOracle platform. In other words,Oando has with this audaciousmove, joined world best-runcompanies in strategic investmentin 21st Century InformationTechnology (IT) infrastructures incommitment to excellent servicedelivery.

The forums became necessary asthe software is deployed to manageend to end Oando’s human

resources process, supply chainand financials transactions,resulting in the use of new formatsfor purchase orders, receipts,invoices, delivery schedules andother documents, with which thebusiness stakeholders dealt withthe company. The key benefits ofthe new robust software include itscapability to capture petroleumproducts supply truck details andassignment of unique truckidentifiers to all transportationwhich helps to check delays andmanage loss and fraud. It alsoprovides the customers andsuppliers real time balances.

The business stakeholders wereacquainted with the newdocuments formats, the adoptedprocesses and procedures. Theywere also assigned with newunique customers codes.

Commenting, Wale Tinubu, GroupChief Executive Officer (DGEO),said “our implementation of oracle

presents us with the opportunity todevelop a proven foundation forbuilding our growth aspirations”.

Oshai Michael, Chief Marketing Officer - Retail addressing the Stakeholders at the event Tsola Barrow (right) Chief Marketing Officer - Commercial discussing with some of the participants

Another quarter has come andgone, as Oando Plc continuesto strive towards

achievements of our 2007 objectivesfor the progress of our company.

During the quarter, a new subsidiary,Oando Gas & Power was formed tocoordinate Oando’s activities in thesector, with the merging of OandoPower and Gaslink.

Other key events that occurred werethe Oracle Stakeholders briefings,which held in different parts of thecountry, informing them about theimpact of our Go-Live on their

business relationship with Oando, aswell as the Group Leadership andGroup Management Retreats held inLagos and Accra, Ghanarespectively.

Other happenings include the GrandFinale of the Oando IdolsCompetition during the Q3 TGIFevent as well as our sponsorship ofthe Nigeria Meets the World Forumheld in New York and organized byThisDay newspapers.From the subsidiaries, OandoMarketing’s Instant Awoof Promo ison-going and winners are emergingdaily, while the newest 21st Century

Performance engine oil, Oleum SMwas launched, From while OEPL hada staff retreat to review its operatingstrategies for 2008, whileannouncing pre-qualification oftenders for OPL 278, its flagship oilblock.

Also included for your readingpleasure are articles on Liberia,Supply & Trading new operationalbase and an article on “FinancialManagement Issues”.

Happy Reading!

3 OandoNews

TRIPP Round the CountryTRIPP Round the CountryTRIPP Round the CountryTRIPP Round the CountryTRIPP Round the Country

Cross-Section of Oando Ghana staff during the TRIPP Roadshow to Ghana

In a bid to ensure that ‘OandoWay’ permeates the entirecorners of the company, the

management on 5 - 9 November,2007, embarked on a roadshowto meet with all members of staffoutside the Head Office. Themeetings took place in sixlocations, namely Abuja,Kaduna, Port Harcourt, Benin,Lagos and Ghana.

Abuja location hosted staff fromBenue, Adamawa, Gombe andPlateau. Kaduna location, on theother hand, hosted staff from theKaduna Lubes Plant (KLP),Kano, Sokoto and Maiduguri.Staff from Owerri, Onne, Imo,Cross-River, Enugu and Abia allconverged in Port Harcourt for

their meeting with the TRIPProadshow team. Edo, Delta andOndo held their meeting inBenin, while Apapa (Lagos)location hosted staff fromAviation and Apapa TerminalFacilities. The roadshow finallytook the TRIPP Team to Ghana,where they met with staff fromOando Togo and Oando Ghana.

The fora gave the managementthe opportunity to assess TRIPP(Team Work, Respect, Integrity,Professionalism and Passion)issues first hand. The immediatefeedback by staff at the variouslocations was that ofappreciation as the TRPP teamwas led Deputy Group Chief

Executive, Mr. Omamofe Boyo,signifying the importancedevoted to TRIPP by themanagement. To ensure that allworkplace issues are clearlyidentified and dealt with, theTRIPP Team included aPENGASSAN chieftain Mr.Asogwa Tochukwu to addressunion-related issues when theyarise. The compliance office andobjectives were also unveiled atthe roadshow.

TRIPP issues management toolknown as the TRIPPo’Meter – anonline apparatus that will seat onthe new Oando intranet - wasunveiled at the various locations.

Early this year, Oandomanagement came to arealisation that the success ofbuilding Nigeria’s largestintegrated energy solutionsgroup rests on the values ofpassion, hunger and aspirationsof young talented professionals.

With that in mind, Oandomanagement commenced achange management processdubbed ‘Project Restore’ toestablish a strong and positivecorporate culture that willpermeate the entire organisationin ‘The Oando Way’ in theshortest time possible. Theroadshow was to take the‘culturisation’ a step higher.

(L-R) Toyin Araromi, Compliance Manager, Oando PLC and Ibem Anya, MD, Oando Ghana

(L-R) Omamofe Boyo, Deputy Group Chief Executive, Bolaji Osunsanya and Akin Ayoola at theTRIPP Roadshow in Ghana

(L-R) Omamofe Boyo, DGCE and Olumakinwa Olatunde, Plant Manager, Kaduna Lube Plant

OandoNews 4

Marketing

Everyone is a Winner during theEveryone is a Winner during theEveryone is a Winner during theEveryone is a Winner during theEveryone is a Winner during theOando Instant AOando Instant AOando Instant AOando Instant AOando Instant Awoof Prwoof Prwoof Prwoof Prwoof Promoomoomoomoomo

The Oando Instant AwoofPromotion is a massiveconsumer drive activity that

commenced on the 28th of June,2007 and is set to conclude on the30th of October, 2007. Followingthe success of the Carry-Go promoin 2005, it was initiated as a needto sustain the momentum andcreate an even greater excitementand appeal to our cherishedconsumers.

The promo is specifically targetedat commercial motorcycle/tricycleriders (Okada and Keke Marwa/NAPEP riders) and commercial car/bus drivers (Taxi and Danfo) as wellas private car owners thatpurchase lubricants at the 314participating retail outlets.

The unique feature with thispromotion is that there are no tryagains as every participate is awinner. Participating consumersare set to win various prizesranging from branded mugs, pens,notepads to generators, bicyclesand motorcycles.

To participate, consumers need tosimply purchase at least 4 liters ofany range of Oleum lubricants or 41-litre special promo packmotorcycle engine oil at anyparticipating Oando station. Thiswould attract a scratch card for aninstant gift and a raffle draw ticketfor an opportunity to win the starprize of 2 Kia Picanto cars!

In the various forecourts awarenessis being created through vibrantdecorations, playing of music, theInstant Awoof jingles and smartlydressed service attendants.Awareness is also being facilitatedthrough the use of posters, fliers,roll-up banners, radio jingle andhypes.

The Instant Awoof Promo is beingsupported by another promotion,Forecourt Super Service, targetedat the Oando service attendants.The objective is to motivate servicestaff to advocate for the purchaseof lubricants, PMS and LPG for thechance of winning a trip outsideNigeria, Keke Marua and otherconsolation prizes.

Acombined team ofSeasoned experts in theCommercial Department

ably led by the Head Lubes,MrOsibogun visited the Gurara Site ofSalini Nig Ltd to fraternise with theTechnical department with the viewof exchanging technical expertise,train Salini’s oil personnel as a formof after sales services and entertainpossible complaints on our productranges. This exercise is the first of a seriesto be conducted at the customer’spremise. The audience includedThe Plant Manager,Store Manager,Plant mechanics,oilers,receiversand issuers (storemen).

The training was conducted by theLubes Sales Engineer while theHead Lubes,BCM Abuja renderednecessary assistance. Key Areas of interest to the PlantManager and his personnel are: a. Bulk Purchase- provision of

Storage tanks for SuperdutyC3 40 and OSO 68

b. Spent Oil analysis c. Extensive Lube Survey for all

equipment

The on site training is part of thevalue added services thecommercial tea render to theirlubricants customers

The Lubes Department Commences On SiteTraining for Customers

Elumaro Adesanmi, Retail Branch Manager, Benin, Mr. Michael Oshai, Chief Marketing Officer-Retail,Mr. Joseph Igbakpa – winner of a motorbike, in the Oando Awoof Promo – and Mrs. Ibiyemi Ibironke,Dealer of Igbesanwan Service Station, Benin, during a presentation ceremony at the station, in Edostate recently.

Cross section of the Instant Awoof gift items with the star prizes

Cross section of participants at the lubes training session for PHCN in Sapele

9 OandoNews5 OandoNews

Oando Unveils Oleum SM:the 21st Century Performance Engine Oil

In accordance with its primeobjective of deliveringsuperior consumer product

and services, Oando Marketing,a subsidiary of Oando Plc,Nigeria’s leading integratedenergy solutions provider,launches its new class of superpremium performance motorengine oil, Oleum SMOleum SMOleum SMOleum SMOleum SM at theBriscoeFord Show Room onMobolaji Bank Anthony Way,Ikeja Lagos on the Wednesday5th September, 2007.

Oleum SM, the new flagshipproduct of the company (thehighest quality of the Oleumrange of products), is the mostadvanced, 21st century, highperformance, multigradelubricant for today’s mostmodern gasoline and dieselengines including turbochargedengines. It conforms to theconforming to the latest API(American Petroleum Institute)SM specification. It adapts to themost arduous service conditionsin all passenger vehicles andcontributes effectively toreducing vehicle downtime forservicing requirements.

Some of the benefits of thispremium quality lubricantinclude:

• Better wear protection formost modern cars

• Improved oxidationresistance and depositprotection

• Exceptional performance insevere driving conditions

• Excellent cold startingproperties

• Energy conservation

Commenting on the new superpremium lubricant, the ChiefOperating Officer, OandoMarketing, Mr. Ayo Ajose-Adeogun says, “The launch ofOleum SM is once again adisplay of our unparalleledcommitment to customersatisfaction at Oando. We areconscious of the care andattention today’s most moderncar owners give their cars andwe have formulated a productthat conforms to the highestinternational quality standard to

assure customers ofguaranteed performancealways. In 2007 and beyond, thecompany plans to aggressivelyenlarge our lubricant marketshare and profit generation andwe expect Oleum SM tocontribute significantly toincreased lubricants profitabilityimprovement to the delight ofour shareholders.”

According to the Head,Lubricants, Mr. Ayo Osibogun,“We are proud to present OleumSM, the premium engine oil andthe latest addition to the Oleumrange of products. The productgives longer drain intervalsbetween oil changes in totalsafety and is more reliable thanother mineral based ACEA E3type motor oils. Oleum SMeffectively increases the usage

period of vehicles beyond thenormal engine oils. Its superpremium performance is seen inits compliance with the EURO 2and the new EURO 3technologies.”

It would be recalled that thecompany is currently running its“Oando Instant Awoof Promo”which is one of the strategies thecompany has employed to pushthe Oleum lubricants into themarket. The launch of thisproduct is an avenue to meet theneeds of high end lubricant userssuch as automobile sales andservice companies such asBriscoeFord.

Oleum SM is available at allOleum SM is available at allOleum SM is available at allOleum SM is available at allOleum SM is available at allOando Service stations andOando Service stations andOando Service stations andOando Service stations andOando Service stations andleading auto companiesleading auto companiesleading auto companiesleading auto companiesleading auto companiesnationwide.nationwide.nationwide.nationwide.nationwide.

(L- R) Ayo Osibogun, Head Lubes, Mr. Oseme GM, Briscoe Ford Nig. Plc with Lara Banjoko, DeputyChief Operating Officer, Oando Marketing cutting the ribbon to officially launch Oleum SM

(L- R) Lara Banjoko, DCOO, Mr Oseme, GM Briscoe Ford Nig. Plc watch as Ayo Osibogun, HeadLubes pours a can of Oleum SM into a 2007 Ford Explorer

OandoNews

Oando Idol finally emerges!!!

(L- R) Morgan Okosun, Apapa Terminal receiveing the Oando Idol certificate from Omamofe Boyo,Deputy Group Chief Executive

Omowunmi (Idols west Africa 1st Runner up) entertaining Oando staff members during the event(L- R) Greg Anyiador, EHSQ, Olisa Adibua, Oando Idols MC and Odion Akhigbe, Retail

Oando Staff singing along as Morgan Okosun entertains them(L-R) Ndidi Obiora, Apapa Terminal, Odion Akhigbe-Retail, Greg Anyiador-EHSQ, Ronke Sokefun-Group Head Legal and Omamofe Boyo, DGCE Oando Idols panel of judges snging a special number

(L-R) Oando dream girls singing silent morning, Iyabo Abiru, Legal, Tomi Lukanmbi, Legal andDamola Dawodu, Corporate Secretariat

(L-R) Ejiro Dortie, Energy Services and Tsola Barrow, Chief Marketing Officer - Commercial

The much expected Oando Idolsfinally emerge at the last TGIFheld on 19th October, 2007 at the

Lagoon Restaurant, Victoria Island,Ikoyi Lagos.

The three contestants that made it tothe third and the last phase wereMorgan Okosun in Customer Serviceand Logistics Department, ApapaTerminal; Vera Ugbechie inProcurement and Services and MichealOnuorah of the Internal Control andAudit Department.

Out of these three, Morgan Okosun

won the coveted Oando Idols awards.The news of his winning was jubilantlyreceived by all present.The hallmark of the evening was theannouncements of prizes for the winnerand the runner ups.

Morgan Okosun won the first prize ofa weekend trip to South Africa for twoall expense paid, Vera Ugbechie wonthe second prize of a trip for two toGhana while Micheal Onuorah won thethird prize of a trip to Obudu CattleRanch.

We wish all the winners a fantastic andhappy holiday.

OandoNews

Group Leadership Council go on Ghana Retreat

(L- R) Adewale Tinubu, Group Chief Executive, Oando Plc and Ibem Anya, Managing Director, OandoGhana

(L- R) Omamofe Boyo, Deputy Group Chief Executive, Ibem Anya MD Oando Ghana, Dimeji Edwards,MD/CEO Oando Supply & Trading

Members of Oando Group Leadership Council brushing up on their bowling skills

On the 14th and 15th

September, 2007,Oando’s Group

Leadership Council (GLC) helda retreat in Accra, Ghana, todeliberate on strategies andpropositions to build thecompany into a world classinstitution driven by excellence.

Oando Group Management hold Retreat

The Management Retreatfor this quarter was heldat the Civic Centre on

Ozumba Mbadiwe.

The objective of quarterly retreatwas for management staff todiscuss amongst other thingspeople, process andorganizational issues and profferlasting solutions. Objectives fornext fiscal year are alsodiscussed and set.

While it is a serious business,they also provided anopportunity to unwind. Nowonder at the end of the first dayof the retreat, a Nigerianrenowned comedian JuliusAgwu came with mind blowingand rib- cracking jokes. It wasfun all the way as there were lotsto eat and drink.

(L-R) Aloiye Aigbonoga, Legal, Ubong Mfonobong , EHSQ receiving theGCEs Award on behalf of their team from Adewale Tinubu, Group ChiefExecutive Oando Plc

Cross section of Oando management staff at the retreat

(L-R) Ayodele Folarin, Onne Terminal receiving the GCEs Award fromAdewale Tinubu, Group Chief Executive Oando Plc

Julius Agwu shaking hand swith Dondo Ahire, Chief Operating Officer -Drilling, Oando Energy Services

The retreat set the tone andmomentum for the Q3Management Retreat held inLagos a week later. While theserious deliberations lasted,members of GLC also made outtime to unwind and relax,

OandoNews 8

Oando Exploration &Production Limited held aretreat to review and

restrategize on the various FieldDevelopment plans for its assets –OPL 278, 236, 283 and 282 inRivers, Akwa Ibom, Delta andBayelsa States respectively. Inthese assets OEPL is only operatorof OPL 278 and 236 while it hasparticipating equity in others.

The retreat tagged ‘Retreat ofRevival’ was held at the VictoriaCrown Plaza Hotel, Victoria Island,Lagos and had in attendance allOEPL staff and support staff fromlegal, HR as well as Seven Energy– OEPL’s strategic partner for OPL236.

The retreat kicked–off on 25th

September 2007 with a welcomedinner hosted by OEPL MD – Mr.Bright Ahonsi, who enjoined all staffto use the opportunity of the retreatto reflect, review and re-strategizeon the best practices and safestmethod for OEPL to fast track theachievement of Oando First Oilwithin the shortest possible future.The MD, during the dinnercommended all staff of OEPL forthe giant stride taken so far in someof the accomplishments recordedespecially in OPL 278.

Similarly OEPL’s COO, Mr. LabodeAkinosho, commended theCommunity Relations team for thecompletion of OPL 278

Environmental Impact Assessment(EIA) and block/ bathymetricsurvey without any majorcommunity problem despite thevolatile nature of the Niger DeltaCreeks. These he attributed to awell planned Community RelationsStrategy and team work. He alsocommended the rest of the OEPLteam for all other contributionsmade in other assets of thecompany.

Other major highlights of the 3 daysretreat were setting of targets forOEPL activities for 2008, campaignto enlighten other subsidiaries andthe Group on the challenges in theUpstream, sustaining thecommunity relations tempo/corporate social responsibilities

OEPL 2007 HOLDS RETREAT OF REVIVAL

and achievement of zero accidentin its operation. Also a meeting withSeven Energy – one of OEPLpartner for OPL 236 was held.During the meeting OPL 236 FieldDevelopment Plan was reviewedand tasks were reassigned tovarious unit heads foraccomplishment ahead of theplanned Well Drilling during the firstquarter of 2008.

The 3 day retreat which lasted from25th – 27th September 2007 washeart warming, educative, andchallenging and a good avenue tobuild team work and enhance teamspirit ahead of activities for 2008.

By Samuel Onyenwe

Oando Exploration & Production

(L-R) Steve Dienney, President Seven Energy, Darell Johnson, Vice President-Drilling, Seven Energy,Eamon Akinosho, Chief Operating Officer, OEPL and Bright Ahonsi, MD/CEO, OEPL

Nigeria Meets the World

(L-R) Adewale Tinubu, GCE Oando plc shakes hands with Daniel Dayo Kunle at the Nigeria meetsthe world forum in New York

Oando Plc was a co-sponsor of the “NigeriaMeets the World Forum”

organized by Leaders &Company, publishers of ThisDayNewspapers which held at theprestigious Waldorf AstoriaHotel, New York. During theevent, Oando sponsored abreak-out session on “Energy inNigeria” where a paper wasdelivered by the Group ChiefExecutive, Mr. Wale Tinubu.

The forum afforded Oando anopportunity to network withmajor global players in the Oiland Gas industry, as well asmembers of the internationalfinanciers in the world.

Oando had an exhibition standat the event and wasrepresented at the event by theGCE, Mr. Wale Tinubu; theGCFO, Mr. Femi Adeyemo andthe GM, CS, Tokunboh Durosaro.

(L-R) Eamon Akinosho, COO, OEPL, Kazeem Koleosho, Exploration Manager, OEPL and AnthonySawyerr, Well Operations Manager, OEPL

9 OandoNews

Supply & TSupply & TSupply & TSupply & TSupply & Tradingradingradingradingrading

LLLLLiberiaiberiaiberiaiberiaiberia, officially the RepublicRepublicRepublicRepublicRepublicofofofofof LiberiaLiberiaLiberiaLiberiaLiberia, is a country on thewest coast of Africa,

bordered by Sierra Leone, Guinea,Côte d’Ivoire, and the AtlanticOcean. Liberia has a hot equatorialclimate with most rainfall arriving insummer with harsh harmattanwinds in the dry season. Liberia’spopulated Pepper Coast - a coastalarea in western Africa, betweenCape Mesurado and Cape Palmaswhich encloses the presentrepublic of Liberia and got its namefrom the melegueta pepper. Alsoknown as Grain Coast after thenaming “grain of paradise” formelegueta - which is comprised ofmostly mangrove swamps while thesparse inland is forested, lateropening to a plateau of driergrasslands. Since 1989, Liberiahas been in a state of fluxwitnessing two civil wars, the FirstLiberian Civil War (1989–1996),and the Second Liberian Civil War(1999–2003), displacing hundredsof thousands of people anddecimating the country’s economy.During the 19th Century (1800s),Liberia is the oldest Black Republicin Africa and second oldest in theworld (Haiti in North America is theoldest) and was one of only twoAfrican nations (along withEthiopia) to retain sovereignty whilemuch of the continent was underEuropean domination.

GOVERNMENT AND POLITICALGOVERNMENT AND POLITICALGOVERNMENT AND POLITICALGOVERNMENT AND POLITICALGOVERNMENT AND POLITICALCONDITIONSCONDITIONSCONDITIONSCONDITIONSCONDITIONS

Liberia has a bicameral legislatureconsisting of 64 representativesand 30 senators. Historically, theexecutive branch heavily

influenced the legislature andjudicial system, the latter beinglargely dysfunctional for now. The2005 election placed a spectrumof political personalities in thelegislature, most for six-year terms.Senior senators were elected fornine-year terms. Party structuresremain weak, and politicscontinues to be personality-driven.

The judiciary is divided into fourlevels, including justices of thepeace, courts of record (magistratecourts), courts of first instance(circuit and specialty courts), andthe Supreme Court. Traditionalcourts and lay courts exist in ruralareas of the country. Trial by ordeal,though officially outlawed, ispracticed in various parts ofLiberia. Locally, political poweremanates from traditional chiefs(town, clan, or paramount chiefs),mayors, and districtcommissioners. Mayors are electedin principal cities in Liberia.Superintendents appointed by thepresident govern the counties.There are 15 counties in Liberia.

EconomyEconomyEconomyEconomyEconomy

Historically, the Liberian economydepended heavily on iron ore andrubber exports, foreign directinvestment, as well as the exportof other of its natural resources,such as timber. Foreign trade wasprimarily conducted for the benefitof the Americo-Liberian elite, withtrade between foreigners andindigenous Liberians severelyrestricted throughout most of itshistory by the 1864 Ports of EntryAct. Little foreign direct investmentbenefited the 95% majority

population, who were oftensubjected to forced labor onforeign concessions. Liberian lawoften did not protect indigenousLiberians from the extraction ofrents and arbitrary taxation, with themajority surviving on subsistencefarming and low wage work onforeign concessions.

While official export figures forcommodities declined during the1990’s civil war as many investorsfled, Liberia’s wartime economyfeatured the exploitation of theregion’s diamond wealth, with thecountry acting as a major trader inLiberian, Sierra Leonian andAngolan conflict diamonds,exporting over $300 million indiamonds annually. More recently,the UN ban on Liberian diamondexports as well as the enforcementof the Kimberley ProcessCertification Scheme byinternational diamond traders haseffectively shut down Liberia’sdiamond industry, (although therewere fears that foreign traders arehoarding the country’s diamondsduring the ban). On April 27, 2007the UN voted unanimously torescind the ban in recognition ofadvances in Liberian efforts toensure that diamonds are minedlegally.

Timber, iron ore, rubber, and othercommodity exports continuedduring the war, in part due to illicitagreements struck betweenLiberia’s warlords and foreignconcessionaires. Looting and warprofiteering destroyed nearly theentire infrastructure of the country,such that the Monrovian capitalwas without running water andelectricity (except for fuel-poweredgenerators) by the time the firstelected post-war governmentbegan to institute development andreforms in 2006. Although someofficial exporting and legitimatebusiness activity resumed once thehostilities ended (for instance,Liberia signed a new deal with steelgiant Mittal for the export of iron orein summer 2005).

The Liberia dollar currently tradesagainst the US dollar at a ratio of57:1. Liberia used the US dollar asits currency from 1943 until itreversed dollarization in 1982. Itsexternal debt ($3.5 billion) is huge

in comparison to its GDP (approx$2.5 billion/year); it annuallyimports approximately $4.839billion in goods while it exports onlyabout $910 million. Inflation isfalling, but still significant (droppingfrom 15% in 2003 to 4.9% in the3rd quarter of 2005); interest ratesare high, with the average lendingrate listed by the Central Bank ofLiberia at 17.6% for 3rd quarter2005 (although the average timedeposit rate was only .4%, and CDrate only 4.4%, barely keepingpace with inflation). It continues tosuffer with poor economicperformance due to a fragilesecurity situation, the devastationwrought by its long war, its lack ofinfrastructure, and necessaryhuman capital to help the countryrecover from the scourges ofconflict and corruption.

Liberia has one of the world’slargest national registries of ships,due to its status as a “flag ofconvenience”.

DemographicsDemographicsDemographicsDemographicsDemographics

The population of over 3 millioncomprises 16 indigenous ethnicgroups and various foreignminorities. Indigenous peoplescomprise about 95% of thepopulation, the largest of which arethe Kpelle in central and westernLiberia. Americo-Liberians, who aredescendants of freed slaves thatarrived in Liberia as of 1821, makeup an estimated 5% of thepopulation, of whom half from USorigin and half from the Caribbean.There also is a sizable number ofLebanese, Indians, and other WestAfrican nationals who make up asignificant part of Liberia’s businesscommunity. A few whites(estimated at 18,000 in 1999;probably fewer now) reside in thecountry.

As of 2006, Liberia has the highestpopulation growth rate in the world(4.91%). Similar to its neighbors, ithas a large youth population.

CulturCulturCulturCulturCultureeeee

Liberia was traditionally noted forits hospitality, academicinstitutions, cultural skills, and arts/craft works— Liberia has a long,rich history in textile arts andquilting.

Know LiberiaOne of the Oando Supply and Trading Operational Bases

OandoNews 10

INTRODUCTION:

The importation of Petroleumproducts was mainly undertakenby the Nigerian NationalPetroleum Corporation (NNPC) inthe pre-deregulation era whichhas the financial andinfrastructural capacity to do so.This however changed with theintroduction of deregulation by thefederal government targeted atthe downstream sector of theNigerian oil industry, coupled withthe low refining capacity of theKaduna, Warri and Portharcourtrefineries, thus making itnecessary for Major andIndependent marketers to embarkon massive importation ofPetroleum products to service theenergy need of the Nation. Thiscame with the attendant financialmanagement implications to theMajor and Independent petroleummarketers.

The objective of this paper is toanalyze the “Financialmanagement issues in theimportation, storage anddistribution of petroleum productsin Nigeria”.

IMPORTATION OF PETROLEUMPRODUCTS

One of the major factors affectingfinancial management issues inimportation of petroleum productsis the finance charges. Mostmarketers have to borrow funds

from banks to meet up with thehuge capital outlay required forimportation of petroleumproducts; these are financedthrough opening of letters ofcredits (LC) with the banks.Marketers with foreign affiliationare somehow better off in thisregard as they have access tocheap sources of funds orproducts from their parentcompanies. The above has amajor financial implication to themarketers as it puts pressure ontheir already thinning marginespecially the major marketerswhose pump prices are regulated.

Another factor is the Demurragearising from delay in obtainingberthing permit for vesselsconveying the importedpetroleum products. Port chargesand import duties as the case maybe.

Funds tied down in PSF under thePPPRA – The Federal governmentthrough the Petroleum ProductsPricing Regulatory Agency(PPPRA) introduced thePetroleum Support Fund (PSF).The PSF is a programme put inplace by the government tostabilize the domestic prices ofpetroleum products againstvolatility in international crude andproducts prices.

The Fund is designed toencourage Marketers to sourceand market Premium Motor Spirit(Petrol) and House Hold Kerosene(kerosene) in the context ofderegulation and as modified bythe desire of the FederalGovernment to stabilize productsprices.

The bottom line is that marketersare allowed to import products atprices over and above prevailingmarket rate and refunds are madeto marketers as agreed with thePPPRA. Such refund usually takestime to be processed andapproved for payment tomarketers which is an issue of

time value of money as no interestis accruable to marketers for anydelay in making the refunds.

From the above it is clear thatadequate financial analysis isrequired to ensure that importedproducts parade competitiveprices in the market.

STORAGE OF PETROLEUMPRODUCTS

Another challenge facingmarketers of petroleum productsis storage capacity. Because ofthe need to import petroleumproducts in bulk, provision ofstorage facilities has become keyin the evolving importation drivenderegulation; which has pavedway for the emergence of privatestorage facilities and jetties inaddition to ones owned by majormarketers. Examples are OandoTerminal at Onne, Port HarcourtTerminal, MRS storage, Ibachemstorage, Lister Jetty etc.Construction and maintenance ofsuch storage facilities costs somuch money.

Storage owners charge betweenN1.4 to N3.00 per litre asthroughput or storage charge asthe case may be, which isdetermined based on demand fortheir facilities to be used forstorage from where trucks areused to lift the products to fillingstations or customers locations.

DISTRIBUTION OF PETROLEUMPRODUCTS

The distribution of petroleumproducts entails lifting fromvarious NNPC Depots, Jetties andother private Terminals across thecountry and transporting same tofill ing stations or customerslocations.

The Petroleum Equalization Fund(PEF) is a major player in thedistribution of petroleum productsin Nigeria. Government adoptedthe bridging arrangement through

PEF to assist marketers who haveto supply products to distantareas by offsetting the extratransportation cost incurred bythem. Before 2007 N1.50 is paidto PEF on every litre of PMS, DPKor AGO sold within Nigeria bymarketers. However, following themeeting of January 11, 2007between the Executive SecretaryPPPRA, Executive SecretaryMOMAN and the GMD of NNPC,it was mutually agreed bridgingclaims refunds be independentlyremitted to PEF effective 1st

January 2007. The New rates arePMS N2.00, AGO N1.50 and DPKN2.00.

In addition to the above there existwhat is called the NationalTransportation AverageAllowance (NTA), it is anarrangement where Marketersclaim or make contribution to thePEF depending on distancetraveled to deliver petroleumproducts. The FinancialManagement challenge here isthat reconciliation anddisbursement of funds due toMarketers from PEF takes a longtime; this in the long run puts a lotof pressure on the Marketers toborrow funds from Banks forcontinuous payment ofTransporters claims with a view toensure hitch free distribution ofpetroleum products.

CONCLUSION

From the foregoing analysis on“Financial Management issues inthe Importation, Storage andDistribution of Petroleum Productsin Nigeria” it is imperative formanagers and investors in thedownstream to take seriouslyexpert advice from their FinanceTeam to ensure optimality in notonly maximizing shareholderswealth but also deliveringunbeatable benefits to allstakeholders.

Daniel DirkiFinance Dept.

FINANCIAL MANAGEMENT ISSUES IN THEIMPORTATION, STORAGE AND DISTRIBUTION OFPETROLEUM PRODUCTS IN NIGERIA.

Daniel Diriki

11 OandoNews

Social Diary

Greg Anyiador’s (EHSQ) daughter Miss Thelma OzemhedeAnyiador celebrated her 1st birthday on 31st May, 2007

Oando Babies

Wilson Okoh-Esene’s (Corporate Communications) new baby girlMiss Samantha Eghonghon Okoh-Esene’s was born on 21st Au-gust, 2007

Femi Odeyemi (ERP) got married to his long time sweetheart Titilolaon Saturday 1st September, 2007

(L) Temidayo Adeboye, Manager, Oando Energy Services in agroup photograph with other participants at the Fast track SecurityDBS training at Conroe, Texas, USA

Joke - Grandma in CourtLawyers should never askgrandmas any questions, if theyaren’t prepared for the answer.

In a trial, a small town prosecutingattorney called his first witness, anelderly grandmother to the stand. Heapproached her and asked, Mrs.Jones, do you know me?

Grandma responded, why? Yes, Ido know you Mr Williams. I have

known you since you were a youngboy and frankly, you are a bigdisappointment to me. You lie, cheaton your wife, manipulate people andtalk about them behind their back.You think you are a big shot whenyou haven’t the brains to realise younever will amount to anything morethan a two-bit paper pusher. Yes Iknow you.

The lawyer was stunned! Not

knowing what else to do, he pointedacross the room and asked, MrsJones, do you know the defenceattorney?

Grandma replied again, why? , Yes,I do. I have known Mr Bradley sincehe was a youngster. He is lazy,bigoted and has a drinking problem.He can’t build a normal relationshipwith anyone and his law practice is

one of the worst in the state. Not tomention he cheated on his wife with3 different women. One of them wasyour wife. Yes I know him.

The defence attorney almost died.The judge asked both lawyers toapproach the bench and in a quietvoice said: “if either of you rascalsask her if she knows me, I will sendyou to the electric chair.